CEO Larry Phillips said the agreement puts Compass on the path to generating cash flow quickly while taking advantage of high gold prices.
“This initial joint-production arrangement represents an important step toward achieving near-term production with minimal capital investment,” Phillips said in a release. “We firmly believe the accelerated timeline afforded by this arrangement is especially important, given the historically high gold price to be realized through the production and sale of gold in the coming year.”
Compass shares hit a 12-month high in Toronto on Tuesday at C$0.22 apiece, having traded at a low of C$0.11. It has a market capitalization of C$15 million.
The agreement allows Compass to process 50 tonnes of ore per hour at the SMAT facility using new processing equipment scheduled for installation by early next year. The plant is just 3 km from its Massala prospect, where the Tarabala…
